If a Company Issues 2,000 Shares for $55 and Then

question 35

Multiple Choice

If a company issues 2,000 shares for $55 and then repurchases 50 shares at $50 and subsequently purchases another 50 shares at $60 each, how much is in the account "contributed surplus on retirement of shares"?

• A)$250
• B)$0
• C)$107,250
• D)$110,000

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Definitions:

Cooling-Off Effect

A period designed to allow parties in a dispute to calm emotions and reconsider their positions.

Arbitration

A method of dispute resolution involving a neutral third party who makes a binding decision.

Advisable

Worthy of being recommended or suggested as a prudent or wise course of action.

Outcome Control

The ability to influence the result of a process or negotiation.